Nationwide Building Society is set to implement significant mortgage rate cuts from today, Friday, 13 September 2024, providing a substantial boost to first-time buyers and home movers. With reductions reaching up to 0.25 percentage points, the changes primarily focus on making homeownership more affordable for first-time buyers, while also offering competitive rates to existing customers moving home. This move comes as part of Nationwide’s ongoing effort to support borrowers in a challenging economic landscape.

First-Time Buyers to Benefit from Substantial Rate Cuts

First-time buyers will benefit the most from these reductions, with Nationwide lowering rates across a range of fixed-rate products, including two, three, and five-year terms up to 95% loan-to-value (LTV). Key rate changes include:

• Two-Year Fixed Rate at 75% LTV: Reduced to 4.49% with a £999 fee, a cut of 0.05%.
• Three-Year Fixed Rate at 90% LTV: Now available at 5.04% with a £999 fee, reflecting a reduction of 0.10%.
• Three-Year Fixed Rate at 95% LTV: Lowered to 5.44% with a £999 fee, the most significant reduction of 0.25%.
• Five-Year Fixed Rate at 95% LTV: Now set at 5.04% with a £999 fee, down by 0.10%.

These reductions are designed to make it easier for first-time buyers to step onto the property ladder, providing them with access to more manageable mortgage payments and improved affordability in a market where every percentage point can make a significant difference.

New and Existing Home Movers Also Gain from Reduced Rates

Nationwide is not only focusing on first-time buyers but also offering competitive rate cuts to new and existing customers who are moving home. New customers moving home will see rate reductions of up to 0.23% on two, three, and five-year fixed products at 90% and 95% LTV, which include:

• Three-Year Fixed Rate at 90% LTV: Reduced to 5.04% with a £999 fee, down by 0.06%.
• Three-Year Fixed Rate at 95% LTV: Now available at 5.37% with a £999 fee, reflecting a cut of 0.23%.
• Five-Year Fixed Rate at 95% LTV: Set at 5.04% with a £999 fee, reduced by 0.05%.

Existing customers moving home are also benefiting from similar rate reductions, ensuring that they receive the same or even lower rates than those offered to new customers. Key rate changes for existing movers include:

• Three-Year Fixed Rate at 80% LTV: Lowered to 4.59% with a £999 fee, a cut of 0.11%.
• Three-Year Fixed Rate at 95% LTV: Now set at 5.37% with a £999 fee, reflecting a reduction of 0.23%.
• Five-Year Fixed Rate at 95% LTV: Reduced to 5.04% with a £999 fee, down by 0.05%.

These reductions are part of Nationwide’s strategy to offer attractive deals across the board, reinforcing their commitment to supporting both new and existing customers in the home-buying process.

Reduction in Early Repayment Charges Offers More Flexibility

In addition to slashing mortgage rates, Nationwide is also reducing selected early repayment charges (ERCs) by up to 1%. This move gives borrowers more flexibility if they decide to repay their mortgage early or switch to a new deal, making it easier for them to adapt to changing financial circumstances without facing heavy penalties.

Nationwide’s Continued Commitment to Competitive Rates

Henry Jordan, Director of Home at Nationwide Building Society, commented on the changes, saying: “These latest reductions will ensure that we have some of the most competitive rates on the market, with a strong focus on supporting first-time buyers as they navigate a challenging environment. Our commitment is to help more people achieve their homeownership goals with affordable, accessible mortgage options.”

Nationwide’s latest rate cuts highlight their ongoing commitment to helping borrowers, especially those entering the market for the first time, secure their homes with confidence.

For tailored advice and support in finding the best mortgage deal, especially if you’re a contractor or self-employed, visit Mortgage Tek. With expertise in navigating the complexities of contractor mortgages, Mortgage Tek can guide you through the process, ensuring you get the best possible rates and terms that suit your unique circumstances. Let Mortgage Tek help you unlock the door to your new home with expert advice and personalised mortgage solutions.